Yokohama, Japan - Nissan CEO Hiroto Saikawa will resign on September 16, the carmaker said on Monday, bowing to pressure after he admitted to being improperly overpaid and marking further upheaval at a company battered by scandal and plunging profit.
Saikawa, who admitted to the overpayment last week, will be temporarily replaced by Chief Operating Officer Yasuhiro Yamauchi, Nissan's chairman of the board, Yasushi Kimura, told a news conference.
His resignation marks a dramatic early exit for a man who had been tasked with righting the Japanese automaker following the arrest and ouster of former chairman Carlos Ghosn late last year. But Saikawa's brief tenure has been characterised by strains with top shareholder Renault and tumbling profits.
For investors, the worsening relationship with Renault has been a particular concern, casting doubt on the future of the Franco-Japanese automaking alliance at a time of sweeping change and uncertainty in the global auto industry.
"Saikawa recently has indicated his inclination to resign, and in line with his desire to pass the baton to a new generation of leaders at Nissan, he will resign on Sept. 16," Kimura told reporters.